Skip to main content

Bitcoin Massive Spike In Long Positions Raises Red Flag, On-Chain Platform Warns

While the general crypto market is slowly turning bearish, Bitcoin continues to hold above key support levels, which previously acted as strong resistance a few days ago. BTC’s renewed uptrend has attracted significant interest among investors, as observed by a rise in bullish bets, but the future may not be all promising.

Bullish Bets On Bitcoin’s Climb Pose Risk

Bitcoin’s long positions have risen sharply following the recent upswing in the asset’s price, indicating strong conviction in its prospects. Advanced investment and on-chain data platform Alphractal reported the shift in sentiment among institutional and retail investors.

According to the platform, large long positions have dominated the crypto exchanges for the last three months. This notable rise in long positions suggests that investors and traders are heavily confident about the ongoing trend and are betting on a rally in the near term.

While this development is pivotal for BTC’s current market dynamics, Alphractal warns of a potential fresh wave of liquidations. “After the recent price surge and short liquidations, holding longs now could increase your risk,” the platform added.

Alphractal hints at a possible new wave of liquidation as an overheated market and increasing leverage positions have previously preceded sharp corrections. This has raised concerns about BTC’s price sustainability as it hovers near key resistance levels. Thus far, Alphractal has urged investors to remain cautious and take profits, adjust their stop-losses, and manage risk sustainably.

Bitcoin

Following the recent uptrend, renewed investors’ interest and confidence in BTC are also observed among whales as they continue to accumulate the asset. Glassnode, an on-chain platform, revealed that the whale investors are back in full force, pushing the BTC’s Accumulation Trend Score to positive levels.

The Accumulation Trend Score is a key metric that measures the intensity and consistency of large holder purchases. Interestingly, this metric has been maintaining a positive level since the beginning of April, reflecting robust buying pressure in spite of price fluctuations.

Data shows that the accumulation trend score for wallets holding at least 10,000 BTC is at a near-perfect accumulation level of 0.9. Furthermore, wallets containing between 1,000 BTC and 10,000 BTC have pushed their trend score to 0.7. Lately, wallet addresses with 100 BTC and 1,000 BTC also shifted toward accumulation as their trend score rises to the 0.5 level.

BTC’s Price Forms Inverse Head And Shoulders Pattern

In an X post, crypto information platform Coin Signals predicted a major move to new all-time highs for Bitcoin in the upcoming weeks. His prediction is based on an emerging bullish Inverse Head and Shoulders formation on the daily time frame.

At first, the expert noted that BTC is long from $76,000, suggesting that the asset might not reach this level again. Looking at the pattern, Bitcoin’s price is expected to hit a new all-time high before retracing to the $92,600 threshold and forming the right shoulder. After the correction to $92,600, Coin Signals points to a massive breakout that would push BTC to $140,000 by July.

Bitcoin

from Bitcoinist.com https://ift.tt/FSz4Y3s
Labels:

Comments

Post a Comment

Popular posts from this blog

Coinbase Adds Wormhole To Spot Trading As Solana Infrastructure Tokens Gain Visibility

Coinbase listings still matter, even in a market that likes to pretend every token is already globally accessible. The exchange ’s decision to add Wormhole puts another major infrastructure name in front of a much broader pool of traders. That matters because Wormhole is not just another speculative ticker. It sits inside one of crypto’s most important, and most debated, categories: cross-chain connectivity. For more details, visit the official Coinbase platform. TL;DR Coinbase is adding support for Wormhole’s W token on spot markets. The listing gives a higher-profile venue to a token tied to cross-chain infrastructure. It also keeps Solana ecosystem names in front of mainstream exchange users. Why A Wormhole Listing Is Interesting Bridge and messaging infrastructure often do not get the same retail attention as consumer-facing protocols, but they matter enormously to how liquidity and applications move between ecosystems. Coinbase’s listing helps push t...
Post a Comment
Read more

Ethereum On Exchanges Crashes To Historic Low Amid Market Volatility, A Bullish Signal For Price?

Ethereum saw a bounce back above the $3,000 price market , with bullish sentiment gaining momentum among investors, especially those on centralized exchanges. Even with the market experiencing sideways movements, the overall supply of ETH on crypto exchanges has fallen sharply, hitting unprecedented levels. Lowest Supply Of Ethereum On Exchanges Recent signals from on-chain metrics indicate that the Ethereum market environment is undergoing a quiet yet significant transformation. This unfolding trend is due to the sharp drop in the supply of ETH available on cryptocurrency exchanges. Related Reading: Ethereum Network Fatigue? Monthly On-Chain Transactions Drops As Activity Slows Down As reported by Coin Bureau on the social media platform X, ETH supply on centralized exchanges has hit levels not seen in years. With more holders choosing long-term storage, staking, and self-custody over keeping their assets available for trade, this significant supply drain indicates a change in i...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more